March 29, 2008 - Big 3 cigarette companies continue to compete for c-store space - the PM T-SET.. With the possibility of federal tobacco regulation on the horizon that may limit tobacco advertising in convenience stores, the big three U.S. cigarette companies (the new Philip Morris USA (PM), R.J. Reynolds Tobacco (RJR) and Lorillard) are aggressively competing for critical advertising space on the wall behind the counter - the power wall. Of course, PM with the greater number of cigarettes sold is the big bully threatening c-store owners. PM has come with the T-set arrangement of their cigarettes directly behind checkout counter. The cigarettes from other companies would then occupy the remaining space. What's the payoff for the c-store owner: from PM on-invoice gets $3.50 from Davenport the wholesaler in the Raleigh area for every carton of Marlboro, Basic and Parliament sold, off-invoice the owner gets $2.00 per carton, then an additional check that varies from $2.00 to $3.00 for each carton sold and finally once a month a check for the space occupied. RJR off-invoice only gives $8.00 for each carton of Doral sold and $6 for each carton of Camel sold and then a check comes once a month for the space occupied by RJR products based on sales and Lorillard gives $6.00 per carton sold of their cigarettes (mainly Newport) and a check for $100 for space no matter how much product has been sold. All tobacco products belong under the counter, It has been found that 80% of smokers want a ban on tobacco advertising in shops to stop youngsters from becoming addicted. More news: Camel SNUS - RJR Reynolds still has the deal buy a pack of Camel Lights and get a coupon for a free can of Camel SNUS. There's NO interest in the deal so the the store owner is planning on taking off all the SNUS coupons and sending back to RJ Reynolds to get credit. Related news brief: News from Convenience Stores - Competition for Space is Getting Ruthless..Click on image to enlarge.. (TobacoWatch.org) - Incomplete in progress..

Regulation of the tobacco industry is long overdue. For decades the tobacco companies have been exempt from the standards of responsibility and accountability that apply to all other American corporations. But is the Family Smoking Prevention and Tobacco Control act the right legislation to get this done?? We are concerned that Philip Morris USA is the co-author of this bill (Mike Szymanczyk, now CEO of the new Atria, Inc. has told investors (3/11/2008) they are engaged in the process of writing the bill). These people are not to be trusted. They tell people they are a socially responsible company but then go out and buy cigar maker John Middleton, Inc. famous for Black & Mild cigars very popular amongst young African Americans.

We can't have this law preempt any tobacco control measures that have already been implemented in various states unless it enhances control. The tobacco regulatory body should be under the FDA's umbrella but a separate entity not deriving funding or human resources from the existing parent agency. (TobaccoWatch.org) Read more...

March 27, 2008 - Starting in January 2009 Australia may require all cigarettes manufactured and sold throughout Australia to be self-extinguishing.. A meeting of emergency services ministers in Canberra (the capital city of the Commonwealth of Australia) on Wednesday (3/26/2008) deliberated upon the need for introducing "fire-proof" cigarettes that get extinguished on their own as the smoker drops the butt, a measure that may help reduce the risk of fires in homes and the bush. New South Wales (NSW) Emergency Services Minister Nathan Rees moved the resolution to make the reduced fire risk (RFR) cigarettes, mandatory under the Trade Practices Act as early as next year. "Every day's delay is another day we live with the risk that someone will be killed or injured or homes or bushland destroyed because cigarettes keep burning when they are dropped or thrown from a car window," he added. Each year, around 4500 fires are caused by cigarette ignitions in Australia. Fires, directly attributed to cigarettes, claimed about 65 lives between 2000 and 2005. A spokesman for the Australian arm of British American Tobacco (BAT) said the company was broadly supportive of the aim. "BAT supports the goal of reducing the incidents of fires caused by the careless disposal of lit cigarettes," spokesman Bede Fennell. "It is important, however, that smokers are aware that cigarettes produced to meet the proposed reduced-fire risk standard are not fire safe and all lit cigarettes should be carefully disposed of." Liggett Tobacco, the fourth largest tobacco company in the United States, will convert production to make all of their cigarette brands fire-standards-compliant nationwide.Why can't BAT do the same for the Commonwealth of Australia?? ( Govts seek self-extinguishing cigarettesa, World News Australia, Wednesday, 26 March, 2008) See related Newsbriefs: August 28, 2007, August 27, 2007, July 20, 2007, June 23, 2007 and April 5, 2007. Click on image to enlarge..(TobaccoWatch.org)

March 26, 2008 - Utah moves from a tax based on the percentage of sales price to one based on the weight - independent of price of smokeless tobacco product.. The Legislature passed and the governor signed House Bill 356. It changed how "moist snuff" is taxed, from a 35-percent tax on the wholesale price to 75 cents per ounce. In other words, the most-expensive brands formerly bore the heaviest taxes. But imposing one flat rate will bring down the taxes on the pricier brands, and raise them on the cheaper ones. The bill which takes effect May 1, 2008 will lower the cost of premium moist snuff brands like Skoal and Copenhagen. UST (principal subsidiaries: U.S. Smokeless Tobacco Company and Ste. Michelle Wine Estates) the maker of these brands has aggressively pushed for taxing smokeless tobacco on a per-weight basis. According to the Centers for Disease Control and Prevention these premium brands are most preferred by users 12 and older.

Reducing the taxes and as a result the prices would directly increase youth smokeless tobacco initiation and use, dooming even more kids to a lifetime of tobacco addiction, related harms, and premature death. Failing to have different weight-based tax rates for each different type or style of product within the smokeless or moist snuff categories would end up grossly under taxing lighter weight products. Most importantly, the newest trend in smokeless moist snuff products is toward spitless pre-packed single-dose tablets or pouches, such as Ariva and Stonewall lozenges, RJR's Camel Snus, Philip Morris's Marlboro Snus and UST's Skoal Dry. This new generation of smokeless moist snuff tobacco products weigh as little as one-tenth per dose compared to the standard moist snuff that comes in a can. Any switch to a weight-based tax would allow these emerging products to pay almost nothing, thereby sharply reducing state revenues. (THE BEST WAY TO TAX SMOKELESS TOBACCO IS WITH A PERCENTAGE-OF-PRICE TAX)[Weight-Based Taxes Hurt State Revenues and Increase Youth Use], Campaign for Tobacco Free Kids) Related news brief: Wisconsin to Increase Tax on All Tobacco Products..Click on image to enlarge..Read more...

March 25, 2008 - Liggett plans cigarette fire safety compliance.. Vector Group Ltd., subsidiary, Liggett Group, announced today it will convert all of its domestic cigarette production standards to meet all state fire safety standards by January 2009, the company has announced. The Mebane, N.C. - based cigarette maker said in an announcement that the move is "consistent with cigarette fire safety standards enacted by a growing number of states." The company will continue to meet all deadlines for fire safety standards in individual states that become effective before January, the company added. CEO Ronald Bernstein said the company will make changes both to its cigarette paper and to its production methods to meet all the guidelines required in different states, while continuing to produce what he called "best-in-class" cigarettes. "Converting our production to make all of our cigarette brands fire-standards-compliant nationwide consistent with that commitment," Bernstein said. (The Business Journal of the Greater Triad Area, 3/25/2008) Liggett Tobacco, formerly known as Liggett & Myers Tobacco Company is the fourth largest tobacco company in the United States and known for brands like Liggett Select, Eve, Grand Prix, Quest, and Pyramid cigarette brands. Liggett Group is the latest cigarette maker to expand into the growing smokeless tobacco category. In May 2008 it will introduce Grand Prix snus in test markets.Fire - Safe Cigarettes for all 50 states - NOW.More information from the Coalition for Fire-Safe Cigarettes. See related News briefs: August 28, 2007, August 27, 2007, July 20, 2007, June 23, 2007 and April 5, 2007. (TobaccoWatch.org) Read more...

March 24, 2008 - Middleton Sales Team Cut.. Altria Group Inc., parent company to the nation's largest cigarette maker, Philip Morris USA (PM USA), decided to eliminate most of the sales force of its recently purchased John Middleton Inc. Middleton's Black & Mild Cigars - a family of pipe tobacco cigars is the top selling cigar package in the U.S. (as of 9/2004 - ACNielson) is very popular with young African Americans. Several different flavors are available including Mild, Apple, Mild FT Filter Tip, Mild Cherry-Vanilla, Cream, Vanilla and Wine. Philip Morris' Black & Mild is the most popular brand of cigars for smokers 12 and older. Nearly a quarter of 18- to 24-year-old blacks in the Baltimore smoke B&M cigars.Black & Milds in Baltimore, Baltimore City Health Dept., 10/2007. PM USA spokesman Bill Phelps said, "Starting this month, a variety of the John Middleton merchandising and promotional resources will be available through the PM USA sales organization." Phelps explained that in cases where retail and wholesale accounts are called on by both Middleton's and PM USA's sales force, those accounts will be transitioned to the team at PM USA.Read more...

March 23, 2008 - Where's The Growth in Smokeless Tobacco Products.. We have heard many times that as a result of the decline in cigarette sales in the U.S. traditional cigarette companies are turning to smokeless tobacco products to bolster their growth. Smokeless tobacco sales volume actually decreased by 11% from 1986 to 2003 (from 125.5 to 114.3 million pounds)[56]; most of this decline resulted from large drops in sales of chewing tobacco and dry snuff (-49% and -67%, respectively). In marked contrast, the use of moist snuff or dip, increased dramatically over this same period (+87%); moist snuff now represents 62% of the smokeless tobacco market. (Nelson et al.,Trends in Smokeless Tobacco Use Among Adults and Adolescents in the United States, Am J Public Health 96(5)897-905, 2006 - abstract - - complete paper) The moist smokeless tobacco (MST) products are divided between premium products segment such as Copenhagan, Skoal, Kodiak and Marlboro MST and the price/value (discount)segment represented by Grizzly (Reynolds American/Conwood), Longhorn (Swedish Match, N.A.) and Husky (USSTC). The price/value segment drives overall growth in the moist snuff category. Since 2003, the share of premium brands decreased from 72% to 59.6% while the price/value offerings increased from 23.3% to 34.8% (AC Nielson 52-week period ending 12/31/2005). In 2005 alone, price/value sales increased nearly 44%, while premium can sales declined by 4.7% (AC Nielsen 52-week period ending 12/31/2005). SNUS products such as Camel SNUS, Marlboro SNUS, Skoal Dry and Lorillard's Triumph SNUS are considered part of the premium segment. As we pointed out to the Liggett people prior to the test marketing of Grand Prix SNUS, these SNUS products will have a hard time catching on and it will take many years to create public acceptance - if possible. Swedish SNUS type products have failed in most countries outside of Sweden. In the U.S. Philip Morris' Taboka SNUS and USSTC's Revel SNUS have already failed and sales of the others have done poorly. Remember the expenditure on cigarettes in 2005 was $82 billion and for the smokeless tobacco category about $3.7 billion. (TobaccoWatch.org) Click on image to enlarge.. - Incomplete in progress..Read more...